eenadu:16/9/2009 City Limouzines India Limited, a finance company, wound up business in the city on Tuesday by duping scores of customers. The quantum of the financial fraud is yet to be ascertained as the police is yet to verify the transaction books.
About 50 customers, who came to know of the fraud, rushed to the city branch office of the firm at Abids.On noticing the office was closed, they approached the Abids police station. They demanded that the company chairman, Mr Vikas Mehta, be arrested and their money returned to them.
The police booked a case against the company at around 8.30 pm under Section 420 (cheating) of IPC.
According to a complaint lodged with the Abids police, Mr Vikas and others floated the firm with its head office in Mumbai. It is alleged that the company was operating with a fake RBI licence since 2006. Its registered office is said to be located in Mumbai.
An investor from Golnaka, Mr M. Srinivas, said the company's regional manager, Mr Wajid Khan, lured them into investing their money. The company had issued preference shares in the name of City Realcom Limited, and lured gullible investors by asking them to invest a minimum of Rs 1,30,000 with a promise that the investor would get a monthly return of Rs 7775 per Rs 1.30 lakh. The company paid interest every month for three years, but its cheques started bouncing since August.
Another victim of the firm, Mr Layk Ali, blamed the police for its failure to check the menace of fly-bynight firms. "The police punish ordinary motorists, but when it comes to financial fraud, they turn a blind eye. The Abids police does know that a fraud company is operating in its vicinity,"he alleged.
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